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System4

2014 Franchise 500
#67
At a Glance

Products & Services: Commercial cleaning

Number of Locations: 1,201

Total Investment: $6.2K - $37.8K

Founded: 2003

Began Franchising: 2003

About System4

Co-founders Phil Kubec and Edward Hammer started System4 based on their combined business experience. Kubec had been both a franchisee and the CEO of a large commercial cleaning franchise; he also became one of System4's first master franchisees. Hammer was involved in multiple entrepreneurial ventures prior to System4, including the startup of a vehicle rental company. System4 has a partnership with the Cleaning Management Institute that allows franchise owners to be certified as custodial technicians.

Franchise Units

Year U.S. Canadian International Company Owned
2013 1,198 0 0 3
2012 1,392 0 0 2
2011 1,302 0 0 0
2010 1,190 0 0 0
Where Seeking Franchisees: Franchisor is seeking new franchise units in the following states:
Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, Midwest, Nebraska, North Carolina, North Dakota, New Hampshire, New Jersey, New Mexico, Nevada, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South, South Carolina, South Dakota, Southeast, Southwest, Tennessee, Texas, Utah, Virginia, Vermont, Washington, Wisconsin, West Virginia, Wyoming.
Direct Capital

Startup Costs, Ongoing Fees and Financing

Total Investment: $6,156 - $37,750
Franchise Fee: $4,440 - $32,000
Ongoing Royalty Fee: 5%
Term of Franchise Agreement: 20 years, renewable
Veteran Incentives: 10% off franchise fee
Financial Requirements
Net Worth: $3,000
Liquid Cash Available: $2,500
Operations
Franchise can be run from home. Number of employees needed to run franchised unit: 3. Absentee ownership of franchise is allowed. (80% of current franchisees are owner/operators).
Direct Capital
Financing Type In-House Third Party
Franchise Fee
Startup Costs
Equipment
Inventory
Accounts Receivable
Payroll

How This Franchise Supports Franchisees

Training: At franchisee's location: 3 days. Seminars : 1 day each.
Ongoing Support: Meetings, Toll-free phone line, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives
Marketing Support: Ad slicks, Regional advertising,

Franchise Ranking History

Franchise 500®: #67 (2014), #20 (2013), #38 (2012), #41 (2011), #58 (2010),
Fastest-Growing: #26 (2013), #16 (2012), #10 (2011), #16 (2010),
Low-Cost: #10 (2014), #3 (2013), #5 (2012), #9 (2011), #14 (2010),
Top Home-Based: #11 (2014), #2 (2013), #7 (2012), #10 (2011), #14 (2010),